The Central Bank of Nigeria has fined nine Deposit Money Banks N1.35 billion for failing to ensure sufficient cash availability at ATMs during the festive season.
The affected institutions include Fidelity Bank Plc, First Bank Plc, Keystone Bank Plc, Union Bank Plc, Globus Bank Plc, Providus Bank Plc, Zenith Bank Plc, United Bank for Africa Plc, and Sterling Bank Plc. Each was fined N150 million as a corrective measure. In adherence to the enforcement protocol, the penalties will be directly debited from the banks’ accounts with the apex bank.
This action underscores the CBN’s zero-tolerance stance on cash flow disruptions during high-demand periods. Despite prior warnings, some banks failed to comply with the apex bank’s cash distribution directives, leading to this enforcement action.
In a statement issued, Mrs. Hakama Sidi, the acting Director of Corporate Communications at the Central Bank of Nigeria (CBN), reaffirmed the regulator’s dedication to ensuring uninterrupted cash availability for Nigerians.
Highlighting the apex bank’s stance, she noted, “In a clear message of zero tolerance for cash flow disruptions, the Central Bank of Nigeria has sanctioned Deposit Money Banks for failing to make Naira notes available through automated teller machines during the yuletide season.”
In November 2024, Governor Olayemi Cardoso, during his address at the Chartered Institute of Bankers of Nigeria (CIBN) Annual Bankers’ Dinner, delivered a firm message to banks, urging them to strictly adhere to cash distribution policies or face stringent penalties. He reiterated the Central Bank of Nigeria’s (CBN) commitment to maintaining a solid cash buffer to address the needs of Nigerians, emphasizing, “Our focus remains on fostering trust, ensuring stability, and guaranteeing seamless cash circulation across the financial system.”
The CBN has pledged to enhance its oversight of cash hoarding and rationing at bank branches and Point-of-Sale terminals, working in collaboration with security agencies to combat illegal cash sales and enforce the N1.2 million daily withdrawal limit for PoS operators.
